Capital Intensity Research Articles

The Influence of Capital Intensity, Institutional Ownership, Firm Size and Public Share Ownership on Accounting Conservatism (In Food and Beverage Sub-Sector Manufacturing Companies Listed on the Indonesia Stock Exchange for the Period 2014 – 2023)

In order to ascertain the impact of capital intensity, institutional ownership, firm size, and public share ownership on accounting conservatism, the study was carried out on manufacturing companies in the food and beverage sub-sector that were listed on the Indonesia Stock Exchange between 2014 and 2023. A quantitative method with a descriptive and verificative approach is the research methodology employed. Financial statements of food and beverage manufacturing companies listed on the Indonesia Stock Exchange between 2014 and 2023 comprise the data used. The findings of the t-test indicate that, although Institutional Ownership and Firm Size have no effect on Accounting Conservatism, Capital Intensity and Public Share Ownership do. Capital Intensity, Institutional Ownership, Firm Size, and Public Share Ownership all significantly impact accounting conservatism, according to the simultaneous test results.

The Influence of Capital Intensity, Profitability, Company Size, and Liquidity On Tax Aggressiveness

The Influence of Capital Intensity, Profitability, Company Size, and Liquidity On Tax Aggressiveness

How Capital Investment and Integrated Reporting Shape Firm Value in Consumer Cyclicals

Firm value reflects performance and competitiveness, which are the main concerns for investors, especially in the consumer cyclicals sector which is sensitive to economic cycles. Inconsistencies in previous research regarding the effect of working capital management and capital intensity on firm value requires further study. This study uses panel data from 83 companies selected by purposive sampling during the 2021-2023 period. The analysis employs a moderation regression method using EViews software. The results show that capital intensity has a significant positive effect on firm value, while working capital management has no significant effect. Integrated reporting strengthens the relationship between capital intensity and firm value, but doesn’t moderate the relationship between working capital management and firm value. These findings highlight the importance of investment in fixed assets and reporting transparency to increase firm value. This study provides insights for managers on leveraging integrated reporting in creating sustainable firm value. Keywords: Working Capital Management; Capital Intensity; Firm Value; Integrated Reporting; Consumer cyclicals

Exploring the Influence of Political Connections, Managerial Ownership, Capital Intensity and Company Size on Tax Aggressiveness

This study aims to identify the effect of political connections, managerial ownership, capital intensity, and company size on tax aggressiveness. The data used in this study are secondary, taken from the financial statements of companies listed in the energy sector index on the Indonesia Stock Exchange (IDX) during the period 2019-2023. The analysis method used is panel data regression, with sampling using purposive sampling. From this process, nine companies were selected as research objects for five years. The results of the study indicate that political connections have a significant effect on tax aggressiveness. On the other hand, managerial ownership, capital intensity, and company size do not have the same effect. This finding indicates that companies with political connections tend to be more aggressive in managing their tax burdens. These political connections can provide certain access and benefits that allow companies to implement more aggressive tax avoidance strategies. The implications of tax aggressiveness found in this study are that companies need to ensure that their financial statements are prepared in accordance with Financial Accounting Standards and make wise decisions in terms of taxation, without taking aggressive actions in tax avoidance.

Unveiling Determinants of Resource Allocation to R&D and Advertising: Insights from Indian Manufacturing Companies

Businesses are eager to understand the factors influencing their resource allocation decisions, yet this area remains largely unexplored in academic research. Furthermore, the existing limited literature predominantly focuses on the determinants of resource allocation to research and development (R&D), with a heavy emphasis on high-income countries. Against this backdrop, this study addresses the lacuna in academic research regarding factors influencing resource allocation decisions, particularly in emerging markets like India. Focused on Indian manufacturing firms, the research employs fractional logistic regression on a 187-firm panel from 2006 to 2023, exploring determinants of R&D and advertising spending. Results indicate positive impacts of capital intensity, liquidity, export intensity, past financial performance and firm age on R&D spending, while large, highly geared firms with strong stock performance show lower R&D intensity. Advertising spending is positively influenced by high liquidity, growth prospects and past sales, with negative impacts from factors like capital intensity, leverage, firm size and stock market performance. Industry-specific factors significantly influence resource allocation decisions, emphasizing the need for tailored strategies. The study provides practical insights for managers, suggesting the prioritization of internal funding for R&D and advertising, maintaining a lower debt structure, and recognizing the innovation-marketing spending trade-off. Also, the findings highlight the need to align resource allocation with a plethora of firm-specific factors. Moreover, the results accentuate that managers should consider industry-level factors, as they significantly impact resource allocation. The non-linear effects of industrial concentration on R&D and advertising suggest a need for careful evaluation of competition levels. Resource investments in R&D and advertising may vary with changing industrial concentration. The positive impact of industrial turbulence on R&D and the opposite effect on advertising suggest a focus on innovation during turbulent times. Managers are advised to carefully manage the R&D-advertising trade-off in such periods.

Evolving Trends in Haryana's Food Processing Sector: Growth, Structure, and Linkages

The present piece of study tries to highlight the status and structure of the food manufacturing industry of the state Haryana. The status of the industry has been analyzed in terms of its structure, growth and contribution in the total manufacturing sector of Haryana. The study utilizes ASI data (2008-22) and NIC classification to evaluate sub-sector performance. The food manufacturing sector is dominated by the grain milling industry followed by manufacturing of other food products units including bakery products, confectionary, prepared foods and many more. Fruit and Vegetables processing units, prepared animal feed manufacturing units and meat processing units remains few, limiting their contribution in the sector. Moreover, the industry has shown a very inconsistent growth trend when compared to the manufacturing sector. Higher working capital intensity of the industry in comparison to raw material intensity indicates creation of more forward linkages by the sector in terms of technological advancements and have revealed comparatively lesser backward linkages.

Pengaruh Karakteristik Perusahaan terhadap Tax Avoidance pada Perusahaan BUMN Sektor Transportasi 2018 - 2022

This research aims to analyze the influence of company characteristics which are proxied through the variables leverage, size, profitability and capital intensity on the tax avoidance variable in state-owned companies in the transportation industry. In this study, the data used by the researcher to carry out in-depth analysis and testing was obtained through secondary data collected by the researcher from the financial reports of state-owned companies in the transportation industry in the period 2018 to 2022. The sample used by the researcher used the purposive sampling method which has been used. determined and collected as many as 44 companies whose criteria had been determined by researchers. The results of this research show that the leverage, size and capital intensity variables have no influence on tax avoidance, while the ROA and ROE variables have a significant influence on tax avoidance. The novelty offered in this research is that researchers tested tax avoidance practices through several variables that have been determined in the transportation sector in government-owned companies, in this case BUMN, which is one type of industry that often escapes public scrutiny, so this is quite interesting to research.

Determinants of Corporate Tax Avoidance: The Role of Financial Distress, Profitability, and Capital Intensity in Emerging Markets

This study investigates the influence of financial distress, profitability, and capital intensity on tax avoidance among companies listed on the Egyptian stock market from 2020 to 2022. Utilizing a quantitative approach, the research analyzes secondary data from 36 firms that maintained profitability during the study period. Tax avoidance is measured using the Current Effective Tax Rate (CETR), while financial distress, profitability, and capital intensity are assessed through the Altman Z-score, Return on Assets (ROA), and capital intensity ratio, respectively. Multiple regression analysis reveals that profitability has a significant negative effect on tax avoidance, suggesting that highly profitable firms are less inclined toward aggressive tax planning. Conversely, financial distress and capital intensity exhibit no significant relationship with tax avoidance, underscoring the context-specific dynamics in an emerging market like Egypt. These findings contribute to the growing body of literature on corporate tax behavior by highlighting the unique determinants of tax avoidance in developing economies. Policymakers are encouraged to consider these insights when designing tax regulations that promote compliance while addressing economic disparities. Future research should expand on these results by incorporating broader datasets and exploring the role of corporate governance and institutional factors in shaping tax strategies

Digital Technology Adoption and Changes in Energy Intensity in German Manufacturing Firms

Information and communication technologies (ICT) are generally believed to have significant potential to reduce energy intensity. In contrast to previous empirical studies, which have relied on aggregated data, we conduct the first large-scale firm-level investigation into this relationship. Our results, which are based on administrative panel data on 28,600 German manufacturing firms, confirm a robust negative relationship between software capital (our proxy for the degree of firm digitalization) and energy intensity for the years 2009 to 2017. However, the effect size is rather small. For the average firm, we find that a 1 percent increase in software usage relates to a decrease in energy intensity by 0.003 percent. Hence, contrary to previous industry-level results, we do not observe substantial energy intensity improvements in connection with ICT adoption. Moreover, we find that the relationship between ICT and energy intensity exhibits properties that can lead to an aggregation bias. JEL Classification: C32, H23, O33, O38, Q56, Q58.

Angel time horizon and industry preferences: The moderating role of personal wealth

ABSTRACT This study explores a fundamental strategic decision for angel investors: which industry to invest in? We focus on angel time horizon—the extent to which an angel considers distant possible future outcomes of current behaviors—and examine its effect on the capital intensity and popularity of the industries in which angels invest. Using a longitudinal sample of 619 angels from 2010 to 2019, we find that angel time horizon is positively related to industry capital intensity and negatively related to industry popularity. Moreover, we find that having less personal wealth enhances the effect of angel time horizon on industry capital intensity and popularity. Our study establishes angels’ time horizons and personal wealth as critical antecedents of their portfolio industry selection strategies.

ESG disagreement and corporate debt maturity: evidence from China

This study explores the relationship between corporate environmental, social, and governance (ESG) disagreements and corporate debt maturity. By examining panel samples from Chinese non-financial listed companies covering 2007 to 2020, we find that ESG disagreements negatively influence corporate debt maturity. Even after conducting a series of robustness tests and addressing endogeneity concerns, the adverse effects of ESG disagreements persisted. A heterogeneity analysis shows that this negative impact is more significant for non-state-owned enterprises, small enterprises, enterprises with high capital intensity, enterprises with low analyst attention, and enterprises in high-tech industries. Through a mechanism analysis, we discovered that ESG disagreements can lead to information asymmetry and heightened default risk, subsequently affecting the maturity of corporate debt. Further analysis confirms that the negative impact of ESG on the debt structure inhibits long-term investment and exacerbates the mismatch between investment and financing terms.

Regional Differences and Spatial Spillover Effects of Urban Carbon Emission Efficiency in Yangtze River Delta, China

Based on the super-efficiency SBM model with unexpected output, this study calculated the urban carbon emission efficiency in order to study the regional differences and spatial spillover effects of urban carbon emission efficiency in the Yangtze River Delta. From 2001 to 2020, the highest average of urban carbon emission efficiency in the Yangtze River Delta was only 0.698, with a low overall level and a flat "Inverted-U" evolution trend. Pure technical efficiency became the main factor driving the change in carbon emission efficiency. The Gini coefficient was relatively high, fluctuating in different years and still dominated by growth. The regional differences in urban carbon emission efficiency increased. The contribution of inter group differences among the four provinces （city） was the main source of the differences in urban carbon emission efficiency. The Moran's I index was positive, which indicated that the positive autocorrelation of carbon emission efficiency was significant, and the spatial spillover effect was obvious. The population density, economic level, and technical level had significant effects. The direct, indirect, and total effects of industrial structure, road network density, and foreign capital intensity on carbon emission efficiency did not pass the significance test. Based on the perspective of factor input-output, the study accurately measured urban carbon emission efficiency in the Yangtze River Delta, identified the causes of the differences in urban carbon efficiency, and introduced the "spatial spillover effect" to analyze the mechanism of carbon emission efficiency. This study compensated for the lack of research on the urban carbon emission efficiency in the Yangtze River Delta and provided quantitative support and scientific inspiration for the low-carbon development.

PENGARUH STRUKTUR MODAL, UKURAN PERUSAHAAN DAN CAPITAL INTENSITY TERHADAP TAX AVOIDANCE (STUDI EMPIRIS PADA PERUSAHAAN SEKTOR FOOD & BEVERAGE DI BURSA EFEK INDONESIA TAHUN 2019 - 2023)

This study aims to analyze the effect of capital structure, company size and capital intensity on tax avoidance. This study was conducted by analyzing the financial statements of companies in food & beverage listed on the Indonesia Stock Exchange (IDX) in 2019-2023. The sampling technique in this study used the purposive sampling method, so that a research sample of 22 food & beverage companies listed on the Indonesia Stock Exchange in 2019-2023 was obtained. This study uses panel data regression analysis and hypothesis testing with a significance level of 5%. The test tool used is e-views software version 12 Student Version Lite. Based on the results of the hypothesis test, the results show that capital structure, company size and capital intensity simultaneously have a significant effect on tax avoidance. Partially, only the company size and capital intensity variables have a significant effect on tax avoidance, while the capital structure does not show a significant effect on tax avoidance, this finding provides insight that company size and capital intensity have a greater effect on tax avoidance compared to capital structure.

IFRS-16 and Firm Investment: Leasing Commitment and Intensity

Generally, this study examines the economic consequences of IFRS-16. Specifically, this study investigates whether commitment and leasing intensity affect firms' investment decisions. Previous literature focuses on constructive capitalization in operating leases and off-balance sheet financing as ex-ante impacts on financial statements. In contrast, this study examines the ex-post impact of leasing on financial statements. Furthermore, this study illustrates the aspects of lessee behavior in their decision to reduce operating leases before the effective date of IFRS-16 implementation. We used paired t-tests and regression with cluster robust standard error and samples from five countries with the largest leasing volume (United States, China, United Kingdom, Germany, and Japan). The observations start from 2011-2022. This study finds that operating lease intensity fell after issuing IFRS-16, while capital lease intensity arose. Operating and capital lease commitment affect firm investment positively, indicating that managers do not always use operating leases to reach opportunist reporting incentives.

Các nhân tố ảnh hưởng tới hiệu quả tài chính tại các ngân hàng thương mại cổ phần Việt Nam

Achieving positive financial performance is essential to ensuring the survival and sustainable development of joint stock commercial banks (JSCBs). Financial performance is affected by many internal and external factors of commercial banks. This study was conducted to examine the impact of factors on the financial performance of Vietnamese joint stock commercial banks. The study used data published on audited financial statements of banks in the period from 2019 2023 and linear regression method to explore the factors affecting the financial performance of Vietnamese joint stock commercial banks. The research results showed that enterprise size has a positive impact on financial performance. Meanwhile, capital intensity, risk, and bank age have a negative impact on the financial performance of banks. GDP has a positive impact and inflation has a negative impact on the profitability of banks. On that basis, recommendations are made to improve the financial efficiency of commercial banks.

Green credit policy and energy consumption intensity in China: Firm-level evidence and insights.

The transition to sustainable development has become a global priority, with energy transformation serving as a key component. In this context, green financial instruments play a crucial role in shaping corporate energy-saving behaviors and promoting sustainable development. This paper examines the impact and mechanism of China's first green credit policy (GCP) on energy consumption intensity (ECI) of manufacturing firms in China, using a difference-in-difference (DID) approach with micro-level data (2004-2009). We find that GCP significantly reduces enterprise ECI, primarily by promoting green technological innovation and capital renewal. We also learn that the effect of GCP varies with firm and industry characteristics, such as financial dependence, size, ownership, capital intensity, and industrial chain position. Moreover, the outcomes suggest that the effect of GCP is stronger in regions with higher degrees of financial development and marketization. This study contributes to the literature on green finance, environmental regulation, and energy efficiency by providing novel evidence on how GCP influences ECI from a micro perspective.

Influence of Profit Management, Transfer Pricing, and Capital Intensity on Tax Avoidance with Company Size as A Moderation Variable

This research aims to determine the effect of earnings management, transfer pricing, and capital intensity on tax avoidance with company size as a moderating variable. The research objects used in this research are manufacturing companies listed on the Indonesia Stock Exchange (BEI) in 2018-2023. This research is a type of quantitative research with multiple linear regression models and Moderated Regression Analysis (MRA). In selecting samples that met the criteria, 30 companies were obtained. This research uses secondary data based on manufacturing company financial reports obtained from the Indonesia Stock Exchange website and related company websites. Data processing was carried out using the SPSS 25 application program. Partial research results showed that earnings management had an effect on tax avoidance, transfer pricing had an effect on tax avoidance, capital intensity had no effect on tax avoidance while moderated regression analysis (MRA) testing showed that company size moderated the effect of earnings management on tax avoidance, company size cannot moderate the effect of transfer pricing on tax avoidance, and company size cannot moderate the effect of capital intensity on tax avoidance.

The effect of leverage and capital intensity on tax avoidance with institutional ownership as a moderating variable

This research is a quantitative study that aims to analyze the effect of leverage and capital intensity on tax avoidance with institutional ownership as a moderating variable. This research is a quantitative study using secondary data in the form of audited financial reports on Primary Consumer Goods sector companies listed on the Indonesia Stock Exchange for the period 2019 - 2023. The sample selection method used purposive sampling technique with several criteria and 304 samples were used in this study. The data analysis used in this study is descriptive statistical analysis, parameter significance test (t test), and determination coefficient test using STATA v.17.0 software with a significance level of 5% (0.05). The results of this test obtained (1) there is no significant effect of leverage on tax avoidance, (2) there is no significant effect of capital intensity on tax avoidance, (3) institutional ownership is not able to moderate the effect of leverage on tax avoidance, (4) institutional ownership is not able to moderate the effect of capital intensity on tax avoidance.

Locational and firm-level determinants of total factor productivity in Vietnamese manufacturing

Total factor productivity (TFP) has received much attention from both academics and policy makers in the past decade, as it promises an answer to the question of sustainable growth in the context of limited inputs. This article examines the TFP of manufacturing companies in Vietnam and the factors at the firm level, in addition to locational drivers, especially at the provincial level, that drive the change in TFP. We use a strongly balanced panel dataset of 1,130 manufacturing firms from 2014 to 2018 and the Wooldridge method to calculate the TFP and a general least squares estimator with a heteroskedastic and uncorrelated error structure to examine the determinants. The results show that the TFP of firms is driven by factors at both the firm and the province levels. Specifically, firm size and capital intensity have a positive impact on TFP, while differences in firm type also influence TFP outcomes. Furthermore, six locational factors significantly impact firms' TFP, with a particular emphasis on Information and Communications Technology (ICT) readiness, transparency index, and corruption index. Most importantly, we found that transparency and corruption have a nonlinear inverse U-shaped association with the TFP of firms, implying that there is an optimal midpoint of governance quality that maximizes the TFP of firms. The article then provides certain implications for both policymakers and firms in improving their TFP.

An Exposition of Transfer Pricing, Fixed Asset Intensity and Capital Intensity on Tax Avoidance

In Indonesia, efforts to maximize tax revenue face obstacles, especially related to the difference in interests between the government and the business world. This difference triggers tax avoidance by taxpayers. The researcher made this scientific article, aiming to examine and analyze the influence of transfer pricing, fixed asset intensity and capital intensity on tax avoidance. This study uses a qualitative descriptive method to study a phenomenon by describing the data obtained from literature studies. Literature studies with 39 journals in the 2019-2024 time frame to ensure relevant and up-to-date information and phenomena related to research topics. The results of this study show that the variables of transfer pricing, fixed asset intensity, and capital intensity have an effect on tax avoidance.